This assignment delves into the strategic performance of Centaur Media through a Balanced Scorecard (BSC) and Strategic Map analysis. The report evaluates key financial indicators, operational efficiency, learning and growth initiatives, and proposes actionable recommendations to enhance business performance amidst challenging market conditions.
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RUNNING HEAD: Financial analysis and Balance score card approach 1 Name of the student- Topic-Financial analysis and Balance score card approach University name-
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Financial analysis and Balance score card approach 2 Inthisreport,studyhasbeenconductedtoevaluatethefinancialandbusiness performance of company. Present description of company Centaur Media Company is events and marketing Solution Company based in London and providing commercial market services around the globe.It provides financial, marketing and commodity based services to its clients (Centaur media, 2017). Competitors name of theCentaur Media Company In this report, Wilmington Plc (WILL) has been taken as rival company for Centaur Media Company to evaluate its business and financial performance (Wilmington Plc (WILL, 2017). Comparison with competitor and industry average figure There are several tools such as using of balance score card approach, KPI assigning factors, competitor’s industry figure and strategic map to evaluate the performance of company. In this report,Centaur Media Company has been taken into consideration.
Financial analysis and Balance score card approach 3 After evaluating the industry market average andWilmington Plc (WILL) business performance, it is evaluated that market capitalization of Centaur Media Plc is GBP 76 million which has increased throughout the time and shown high amount of growth in since last 10 years. On the other hand, Wilmington Plc (WILL) has reflected GBP 207 million market
Financial analysis and Balance score card approach 4 capitalisation in 2017 (Centaur media, 2017).This has shown that Wilmington Plc (WILL) has performed 3 times better as compared to the business performance of Centaur Media plc.In addition to this, net income of Centaur Media is also in negative 8 million which reflects its negative business performance (Delen, Kuzey, and Uyar, 2013).On the other hand, Wilmington Plc (WILL) has shown positive GBP 12 million amount of net income in 2017 which is 22% higher as compared to last five years data. Moreover, Present earnings ratio of Centaur Media is negative which reflects that company has been decreasing value of its business. Wilmington Plc (WILL) has 1.7 PE ratios which reflect that company has been creating value on its investment. Interest coverage of Centaur Company is also negative 10. It reflects that company has high financial leverage and should lower down its financial leverage. On the other hand, Wilmington Plc (WILL) has positive 12.41 interest coverage ratio which reflects that company has low financial leverage and could increase its debt funding to increase the overall business efficiency and reduce the overall cost of capital. Measurement against theCentaur Media’sKPIs and evaluation of the use of KPIs in assessing organization performance There are several key performance indicators ofCentaur Media which could be used to gauge the performance of company (Carmona, 2014). Key performance indicatorsObservation RevenueGBP 73 million. This has shown that Centaur Media was GBP 68 million revenue in 2012 which increased by 10% since last five years. Net incomeIt has negative -7million net income which is far better than last five year data. Company is struggling with the sluggish market condition Market capitalizationIt had GBP 76 million market capitalization
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Financial analysis and Balance score card approach 5 which is 22% higher as last five years data. Future estimations.Company is planning to increase its sales by 26% by two years and has endeavor towards increasing its net income to 10% within 5 years (Bodie, 2013). Balance score card ofCentaur Media ParticularObjectivesGoalsIndicatorsInitiatives Financial perspective Increased revenue by 10% since last 5 years. Increase it by 30% within 10 years (Gabriel, et al 2014). Financial statement Installing new system and effective marketing strategies Customer perspective Having high customer rating and increased market share to 18% in London and international market Increase the value of its clients by 15% on average Increased the value of the sales and clients satisfaction (Wilmington Plc (WILL, 2017). Improve the product mix and offer newly attractive marketing strategy for the customization of the product Internal process system Install cyber computing enterprises resources planning to increase the overall productivity and efficiency Increase the productivity by 30% in this upcoming next year. Determine the target and set outcomes for particular chain process. Install cyber computing enterprises resources planning Learning and growth Hiring of skilled and professional staff in online marketing Implement training and development department for sales teams Enter into strategic alliance with other organization Develop business selling online marketing channel.
Financial analysis and Balance score card approach 6 Strategic Map A strategic Map is a diagram which is used to document the primary strategic goals being pursued by an organization or management team. This strategic map of Centaur media is designed to increase its business efficiency (Antypas, 2016). (Source by author) Discussion and explanation of BSC and the Map It is evaluated that business organization is accompanied with the complex set of activities in which various functions are performed. In this report, financial performance and business functioning have been evaluated in determined approach.This BSC and MAP have shown that if Centaur Media could increase its overall efficiency by adopting cyber computing system. In addition to this, financial perspective of Centaur Media’s showcase that company has
Financial analysis and Balance score card approach 7 increased its overall value of the business but still due to sluggish market condition, it has increased its overall revenue (Coe, and Letza, 2014).Internal perspective of business is also reflects that company needs to hire professional staff and cyber computing system. Learning and growth of Centaur Media reflects, it has to invest more capital in its research and development department for the creation and innovative value chain activities. Conclusion After evaluating all the required details and collected information, it could be inferred that Centaur Media needs to make changes in its business functioning by implementing new strategic plans and installing new system. It has been facing sluggish market condition and negative business factors that has resulted to negative net income and non-effective business. Company needs to evaluate the points given by its balance score card and required changes should be made to make better result and increasing its overall revenue.
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Financial analysis and Balance score card approach 8 References Antypas, N., 2016.Essays on mergers and acquisitions: acquisition target prediction, CEO deal experience on deal performance, and value creation on a massive scale(Doctoral dissertation, University of Reading). Bodie, Z., 2013.Investments. McGraw-Hill. Carmona, R., 2014.Statistical analysis of financial data in R(Vol. 2). New York: Springer. Centaurmedia,2017,annualreport,retrievedon06thNovember,2017from https://www.google.co.in/search? q=Centaur+media+anual+reprot&oq=Centaur+media+anual+reprot&aqs=chrome..69i57j0l2.121 74j0j7&sourceid=chrome&ie=UTF-8 Coe,N.andLetza,S.,2014.Twodecadesofthebalancedscorecard:Areviewof developments.The Poznan University of Economics Review,14(1), p.63. Delen, D., Kuzey, C. and Uyar, A., 2013. Measuring firm performance using financial ratios: A decision tree approach.Expert Systems with Applications,40(10), pp.3970-3983. Gabriel, R.A., Gimlich, R., Ehrenfeld, J.M. and Urman, R.D., 2014. Operating room metrics scorecard—creatingaprototypeforindividualizedfeedback.Journalofmedical systems,38(11), p.144. WilmingtonPlc(WILL,2017),annualreport,retrievedon06thNovember,2017from http://quicktake.morningstar.com/stocknet/secdocuments.aspx?symbol=wil&country=gbr
Financial analysis and Balance score card approach 9 Appendix